Final answer:
The Affordable Care Act, or Obamacare, was established to bring the US closer to universal health coverage and includes key features such as the individual mandate, protection for preexisting conditions, and employer mandates. It is funded through taxes and fees, has faced legal and political challenges, but continues to play a crucial role in the US healthcare system.
Step-by-step explanation:
Key Features of the Affordable Care Act (ACA)
The Affordable Care Act (ACA), often referred to as Obamacare, was signed into law by President Obama in March 2010. Aiming to achieve nearly universal health coverage in the United States, the ACA introduced several key features to reform the healthcare system.
One of the hallmark provisions is the individual mandate, which requires all citizens to have health insurance, either through employment, a government program, or by purchasing it directly, with subsidies available for those with lower incomes. Another core aspect is coverage for individuals with preexisting conditions, ensuring they cannot be denied insurance coverage. Additionally, the ACA includes employer mandates that require companies of a certain size to provide health insurance to their employees.
The act also encompasses various taxes to fund its provisions, such as an additional Medicare tax and taxes on high-income earners, fees on health insurance providers, and taxes on medical device manufacturers. Despite challenges and amendments, including actions by the Trump administration to repeal parts of it, and subsequent defense of the act by the Biden administration, the ACA has dramatically reduced the uninsured rate in the US and remains a significant part of the American healthcare system.